Risk management framework
Legal and regulatory framework:
- Banking Law: Articles 21, 64 and 65
- Relevant thematic NBB circulars:
- International reference documents:
- Guidelines EBA/GL/2021/05 of 2 July 2021 on internal governance => paragraphs 152 to 162
- Guidelines EBA/GL/2020/06 of 29 May 2020 on loan origination and monitoring
- BCBS Principles: principles 5 and 7
As part of the overall internal control framework, institutions should have a holistic institution-wide risk management framework extending across all its business lines and internal units, including independent control functions, recognising fully the economic substance of all its risk exposures (including environmental and climate risks). The risk management framework should enable the institution to make fully informed decisions on risk-taking.
For further information on this subject, please refer to paragraphs 152 to 162 of Guidelines EBA/GL/2021/05 and to Guidelines EBA/GL/2020/06 on loan origination and monitoring.